How to take loan against property for trading?

I would like to take loan against my properties for trading (around 1 crore or more, if possible.)

I tried ICICI Bank, PNB, SBI, HDFC Bank, Bandhan Bank. They all said, we only give loan to salaried people. I only earn money from rent income.

From where can I get loan against property? I tried some private companies, they are ready to give loan but only at 12% interest rate, which seem little bit more.

Note: I am fully aware of the risks involved, I know you will strongly advice against it, but I have made up my mind, and I am trading without leverage. (or 1x leverage only) I am also ok, If market crash tomorrow and I lose 30-50% of the money, I can handle it.

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Problem is they need something from your side which will provide them assurance that you can service the loan during regular intervals. As you said your only income is through rent it makes it hard for them to believe you will be able to service the loan incase if your investment idea is not working or tenant has left or stop providing rent.

Besides how will you handle if your investment loses 30% to 50% value? How will you service the loan through rent only?

For one crore loan for 20 years at 10% it comes out to be around 1 lakh per month EMI.

When a bank lends money to a customer, the first and foremost thing they look at is your cashflow. Do you have adequate cashflow to meet the interest and principal installment (EMI) If you do have the income, they do calculate (DSCR) - Debt service coverage ratio and if this is acceptable they will give you the loan. Security is secondary as the banks primary business is to not to sell security to recover the loan. Their primary duty is to lend money to people who can repay the money on due dates.

This is absolutely your call and we all wish you the very best. The only reason most of the users gave an opinion is because you asked a specific question and we responded.

All the very best.

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It’s up to you on how to source funds for your investments. It’s better to think twice before taking loans against properties because these make monetary commitments. Public banks have many rules and require any assurance for such loans. Better be wise with your decisions.


BAD IDEA ! even if you are a good trader -

Pledging property and getting a loan @12% - and the money is use for trading is a very very high risk , even if you lose 50% of your capital your loan interest you need to pay every month , if you are trying to do these thing you are pushing your family from the highest tallest building ,

Go slowly , never jump with one crore . i started 10lakhs capital around 8 years back i am compounding every month now my capital is 1.3 crore , i am continues making profit i will show you my profit , even a single month i am not loosed any money in market i seen lot of black swan event in the market

even your idea is very BAD